Prevent Foreclosure
Whether you are currently facing or concerned about the possibility of foreclosure, this site is a helpful and credible source of information. In addition to answering your questions about foreclosure in Hawai’i, you’ll find resources for foreclosure options or guide you through the process with better results.
Foreclosure is the last thing on anyone’s mind when buying a home, but know that it is often avoidable if you are proactive and communicate with the appropriate people.
We are here to make the dream of homeownership a reality for people and want to do everything they can to ensure that homeowners can afford to stay in their home.
Facing Foreclosure In Oahu
Action Steps:
Facing foreclosure on your home can be an emotional strain, but there are steps that you can take even during the foreclosure process to avoid losing your home. Here are some steps you can take if you find yourself in the foreclosure process.
If you’ve missed one or more mortgage payments:
- Take action right away. Your lender can offer options such as loan modifications or mortgage workouts that may result in a lower payment or reduced interest rate.
- Open and respond to all mail from your lender. The notices you receive will offer advice on avoiding foreclosure. Later mail may include important notice of pending legal action.
- Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can’t make your payments.
- Prioritize your spending. After health care, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses, such as cable TV, memberships and entertainment that you can eliminate. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.
- Use your assets. Do you have assets such as a second car, jewelry or a whole life insurance policy that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
If you cannot reach your lender or comply with a loan agreement:
- If your loan carries an unusually high interest rate or requires a “balloon payment,” you may have been the victim of predatory lending. Contact a local financial institution to see if you qualify for a refinanced, fixed-rate mortgage.
- If you still cannot make reduced mortgage payments, call your lender again.
- Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can’t make your payments.
- Stay away from companies that promise to help you work with your lender for a fee – these are often scams.
If you have received a foreclosure notice:
- Contact your lender to see what options they may be willing to offer. Understand that your financial institution wants to help you keep your home. Foreclosures cost lenders tens of thousands of dollars, drive down property values and damage the credit of the homeowners for years to come.
- Contact your attorney.
- Avoid foreclosure prevention companies. You don’t need to pay fees in advance for foreclosure prevention help. Use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they may charge you a hefty fee (often two or three month’s mortgage payment) for information and services your lender or a HUD-approved housing counselor will provide free if you contact them.
Find HUD-approved counselors Oahu.